U.S. Offers Potential FX Credit Line to Support Argentina
U.S. Treasury Secretary Scott Bessent signaled that the Trump administration is prepared to offer Argentina a foreign exchange credit line if unforeseen external shocks threaten its economic progress. Speaking at a private meeting in Washington, Bessent said the U.S. could use its Exchange Stabilization Fund to help stabilize Argentina’s economy, provided the country continues with its current reform path.
“If something happens through no fault of their own, we’d be willing to step in and help smooth things over,” Bessent said, according to a meeting transcript shared with Reuters.
Under President Javier Milei, Argentina has implemented strict austerity measures and a zero-deficit target. Though Milei secured a $20 billion IMF loan in late 2024, reserves remain thin, and attracting foreign investment is crucial for long-term growth.
Bessent praised Milei's resolve, contrasting it with former President Macri’s abandoned reforms. “Macri blinked, and the market came for him. My sense is that Milei won’t blink,” he said.
Bessent also touched on improving U.S.-China trade relations during the meeting. Milei’s alignment with Trump has further tightened U.S.-Argentina relations amid ongoing economic recovery efforts.